Question

Marigold Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2020, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D $126 Item $116 Item F $100 Item G $95 Item H $116 Item I $95 Estimated selling price Cost Cost to complete Selling costs Using the LCNRV rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2020, for each of the inventory items above. Item D Item E Ttem F Item G Item H

Answer 1

	Col I	Col II
	Net Realizable vlaue	Cost	LCNRV(Lower of Col I and II)
Item D	$83	$79	$79
Item E	$65	$84	$65
Item F	$63	$84	$63
Item G	$37	$84	$37
Item H	$73	$53	$53
Item I	$42	$38	$38
Net Realizable vlaue =Estimated selling price - cost to complete - selling costs